TNAG-2291-FCO40-3300-Relations-between-Hong-Kong-and-Taiwan-1991 — Page 76

140402

MDHIAN 3712

нисого/з

CONFIDENTIAL

FM PEKING

TO DESKBY 25090OZ F C O

TELNO 592

OF 250835Z APRIL 91

CONFIDENTIAL

pw

Taiwan

INFO PRIORITY HONG KONG, BTC HONG KONG, UKREP JLG HONG KONG INFO PRIORITY WASHINGTON, TOKYO, CANBERRA, WELLINGTON, ACTOR

PERSONAL FOR BURNS, AUSS

HONG KONG PERSONAL FOR GOVERNOR

MIPT:

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PW

FUTURE OF ATTC

WE HAVE THE FOLLOWING COMMENTS ON THE DRAFT SUBMISSION IN BRISTOW'S FAX OF 22 APRIL:

A) PARA 4: OUR UNDERSTANDING WAS THAT ATTC WAS 90% FUNDED BY THE DTI, AND 10% BY THE CBI. WERE WE WRONG OR HAS THIS CHANGED?

B) PARA 4: IT IS SLIGHTLY MISLEADING TO SAY THAT THE US OFFICE IN TAIPEI (AIT) IS STAFFED BY STATE DEPARTMENT OFFICIALS ON ATTACHMENT. THE OFFICIALS IN AIT ARE FROM A VARIETY OF US GOVERNMENT ORGANISATIONS. BEFORE BEING POSTED TO TAIWAN THEY MUST RESIGN FROM THE US GOVERNMENT, AND ARE THEN GIVEN CONTRACTS WITH AIT CAIT PURPORTS TO BE A NON GOVERNMENT ORGANISATION). OFFICIALS HAVE AN UNDERSTANDING WITH THEIR PARENT ORGANISATIONS THAT THEY WILL BE ABLE TO RETURN TO THEM AFTER THEIR TIME IN TAIWAN.

THE

C) PARA 5: ALTHOUGH THE TAIWAN ECONOMY HAS UNDOUBTEDLY BEEN DYNAMIC IN THE PAST, THERE IS A FEELING THAT IT IS NOW BEING CONFRONTED BY A SERIES OF INSTITUTIONAL AND OTHER PROBLEMS, INCLUDING INCREASING POLITICAL INSTABILITY. THIS MIGHT BE REFLECTED IN A LINE OF CAUTION ABOUT THE FUTURE PROSPECTS FOR THE TAIWAN MARKET.

D) PARA 6: IF WE ARE CONSIDERING RE-ESTABLISHING ATTC ALONG THE LINES OF THE COMMERCIAL SECTION OF AN EMBASSY SHOULD WE NOT ALSO BE CONSIDERING WHETHER WE SHOULD SEEK QUASI-PRIVILEGES FOR ITS STAFF: BOTH THE US AND JAPANESE OFFICES IN TAIWAN ENJOY QUASI-

DIPLOMATIC STATUS.

E) PARA 10: MIPT COMMENTS ON THE INCLUSION OF DAVIES IN THE

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